Baltimore County school officials have disqualified the lowest bids on several costly construction projects for what contractors are calling minor oversights in paperwork.
"Taxpayers are spending millions more for these projects," said William M. Huddles, a construction lawyer who is representing two contractors involved in disputes with the school system.
All of the errors have occurred in the minority business enterprise portion of the bids. "Either they are interpreting too strictly or making it too difficult to fill out forms," Huddles said.
Several contractors said they are taking their arguments to the state Board of Public Works today.
"We can't let a narrow interpretation of the rules run the show," Huddles said.
At the nearly $60 million project to build a new Carver Center for Arts and Technology in Towson, denial of low bids on electrical and mechanical work, both of which Huddles appealed, could have added another $3 million to the job. After an interview with a reporter, the county schools purchasing manager reversed the office's denial of the electrical contract late Friday and said the work will be awarded to Electrico, the low bidder.
The county initially disqualified Electrico's offer because it did not include the exact dollar amounts that would go to minority subcontractors, a decision that could have cost an additional $1.4 million for the same work.
In granting the company's appeal, county purchasing manager Richard L. Gay said in an opinion to Huddles that Electrico's MBE participation "was substantially complete and accurate because the necessary amounts could be ascertained" from the data provided.
Huddles has also handled an appeal for Joseph M. Zimmer Inc., who lost out on the mechanical work at Carver after leaving blank several spaces on the minority business participation form. The contractor had provided details showing 20 percent minority contractor participation. The next qualifying bid is nearly $1 million more.
"Maryland courts have said that minor mistakes can be corrected on the low-bid contract as long as there is no material deviation," Huddles said.
He estimates that school officials' decisions could lead to about $10 million in additional costs for the Carver project alone. None of the omissions, additions or minor errors on the bids affects the price, quantity, quality or delivery of the project, Huddles said.
Costs weigh into the county's decision, but the ultimate goal is the best possible work with the requisite minority participation, said Gay, who supervises the county's five purchasing agents.
"We run a fair process across the board," Gay said. "It is not fair to vendors who do submit complete information to give a contract to one who leaves out information. We want the lowest price from the best vendor."
Gay said he rarely overturns his agents' decisions and declined to comment on specifics of appeals in progress.
James W. Ancel Sr., named American Minority Contractors and Businesses Association's 2009 general contractor of the year for his high utilization of minority and women subcontractors, has also appealed to the county purchasing manager.
Ancel, who in the past several years has done more than $100 million in construction work for Baltimore County schools, achieved nearly 30 percent minority participation - the requirement is 25 percent - and submitted the lowest bid to complete the renovation of Milford Mill Academy. Ancel said his $19.2 million offer was rejected because he placed plus signs in front of the required minority percentages to denote he had exceeded the goals. The county may pay an additional $1 million for the same renovation.
"This is totally unreasonable," Ancel said. "We went over the goals. I have been in business for 21 years and have never seen so many MBE rejections in my entire life."
Ancel has appealed his bid rejection to Gay and, if that fails, he plans to pursue the issue in court.
Because of past discrimination, the government allows favoritism for minority business owners in certain areas. The county relies on state guidelines as it sets goals for minority and women-owned businesses for each project and requires contractors to make and document good faith efforts to meet those established goals. The percentage of minority participation can differ widely, depending on the trade.
Arnold Jolivet, president of the American Minority Contractors and Businesses Association Inc., said he is urging the state to revise the MBE forms, which he called "vague, cumbersome and lacking in clear instructions."
"The county schools administration is too rigid and unreasonable," Jolivet said. "They are disqualifying prime contractors for errors that are minor and could be waived."
Bidding is typically done on a deadline and mistakes can occur as contractors rush to fill out numerous forms.
"The county should be bending over backward to give to the lowest bidder, not looking for ways to take the work away from them," Huddles said. "Their emphasis is exactly the opposite of what the courts said it should be and it's costing everyone a lot of money."